Bitcoin has endured for years despite continued predictions that it would inevitably tank and fail to provide meaningful returns to those who invested in it early on. Despite the amazing resilience of the world’s leading cryptocurrency, however, many continue to doubt the ability of Bitcoin to survive and thrive well into a future that will include major competitors like Libra, a budding token being proposed by Facebook Inc (NASDAQ:FB).
Nevertheless, Bitcoin could benefit from Facebook’s recent balking. The world’s largest social media platform recently made a mistake which could cost it dearly in the future, and Bitcoin could potentially benefit from this stumble.
Facebook won’t go about without government approval
Facebook balked recently when it confirmed that its forthcoming cryptocurrency, Libra, won’t be going forward without government approval. This may sound confusing, but it’s best viewed in light of the constant oversight Facebook has been withering under that’s originated on Capitol Hill, where many lawmakers from both major parties have been grilling the company’s senior executives lately. Facebook CEO Mark Zuckerberg even testified before congress, demonstrating that the company is seriously committed to remaining on the good side of the government regulators who play a huge rule in determining its future. After Facebook revealed that it was set to announce that Libra wasn’t going anywhere without government approval, some investors began to nurse doubts in the viability of the social media platform’s forthcoming digital token. After all, if Facebook is bowing and scraping to the U.S. government before Libra even takes off, how can investors be assured of the independence and viability of the token once it really gets started in the open market? Facebook’s digital token is obviously different than Bitcoin and other leading tokens like Ethereum, but the questions being raised by its recent decision won’t go away anytime soon. Bitcoin could seriously benefit from the doubts being raised about Facebook’s future right now. This is particularly true thanks to Bitcoin’s maverick nature as an independent, volatile cryptocurrency that doesn’t technically answer to anyone except those mining it. Economic philosophers interested in the future of money and free-market champions eager to spend without government oversight alike have embraced Bitcoin and similar tokens because of its inability to be controlled by any one entity, and they may continue to buy Bitcoin’s performance in the near future.
Critics won’t remain silent
Despite the serious opportunity facing Bitcoin right now, the world’s leading cryptocurrency is still going to be grappling with the press when it comes to its long-term viability. That’s because many people have a vested interest in seeing Bitcoin fail; having predicted its failure for years now, those who are against Bitcoin can only succeed if it and other cryptocurrencies ultimately tumble and never recover. That’s why criticisms against investing in Bitcoin will remain rampant in the wake of Facebook’s decision.
Other forthcoming events could prove to be more important to Bitcoin’s long-term future, however, rendering any discussion of Facebook pointless. The so-called Bitcoin halving, for instance, is set to radically disrupt the cryptocurrency market and is likely to be here sooner rather than later. The ins and outs of the Bitcoin halving can be confusing to understand, but the most basic element is that the reward for mining and producing new bitcoins will be reduced for 50 percent – or halved. As investors approach an uncertain future, it could be that the forthcoming halving is more important in their analyses than any ability to capitalize on Facebook’s failures to assert the independence of Libra.
Bitcoin must contend with other rivals
The halving and Facebook aren’t the only things on the minds of Bitcoin investors, either; Bitcoin must contend with other rivals, like a forthcoming token from China, which could thwart the ability of the world’s leading cryptocurrency to remain at the top of the dogpile for long. China’s long-awaited Bitcoin rival is rapidly barreling towards us and will be here sooner than many critics believe, and nobody is yet sure of how that will disrupt global cryptocurrency markets. While it almost certainly won’t dethrone Bitcoin from its spot at the top of the marketplace, a new cryptocurrency from China could signal a new era in the broader crypto marketplace. Clearly, more people around the world are investing their time, money, and creative energies into tokens which could one day seriously compete with Bitcoin.
Ultimately, however, an expanding crypto marketplace could put additional wind in Bitcoin’s sails, even if it means dealing with more rivals. After all, as the world’s leading digital token, the growing health of the broader crypto marketplace seems to indicate that Bitcoin is as the heights of a budding sector that’s more stable than its critics would like you to believe. Bitcoin’s proponents will have to move quickly to benefit from Facebook’s balking if they want plenty of time to deal with other forthcoming developments.